Escrow????

[mouse549]

What is escrow, what is it used for, and once company reaches the max.out of drivers check what happens to the money?
Does thr driver get it back at some point.?

Thanx
Mouse :~}

 

[TryHoursRcrtr]

I know that our escrow is capped out at a certain amount, then it is held in an account for the driver. IF the driver has an insurance claim against them, OR a cargo claim, we will take it out of the escrow acount. This way the O/O doesn't feel a big bite out of their earnings. Our escrow is totally refundable with interest upon termination of the lease.

Christine

 

[abcwine]

Good question. Escrow usually covers the cost of permitting the vehicles, fuel taxes, trailer, and qualcom. Depending on what type of vehicle you are, would determine how much escrow is due. Escrow is usually deducted weekly until the full amount is collected. It is held in a T-bill acount where you would collect quarterly interest. Upon termination of the lease, monies are refunded back to you usually within 45 days, pending all equipment and permits are returned.

Hope that helps,

ABC